Talking to the newsmen in Islamabad on his return
from Saudi Arabia, Prime Minister Shaukat Aziz said that the two
countries have agreed to further strengthen their brotherly ties by
widening their interaction on Islamic causes, cooperation in fighting
extremism and promotion of trade and investment. He said that he had
very useful discussion with the Saudi leaders including King Fahad and
the crown price Abdullah on these issues and saw enhanced cooperation
between the two countries in future.

Prime Minister said that his meetings with Saudi
entrepreneurs and economic managers hold great promise and Saudi
Commerce Minister Hashim Yamani will soon visit Pakistan to discuss
investment opportunities. He said a Pakistani bank will soon start
operations in Saudi Arabia and there will be enhanced interaction
between the private sectors. "I explained to my Saudi brothers, at
length, that Pakistan is a very profitable and attractive investment
destination. He said around one million Pakistanis were working in Saudi
Arabia and efforts were under way to secure more jobs for them in Saudi
Arabia. The Saudis have expressed deep appreciation and regard for
Pakistan and its people. Shaukat said the two countries enjoy deep,
cordial ties, embedded in history and religion. The relations, he said
span over economic, political and defence fields. "Saudi Arabia was
Pakistan's true and deep friend and the two had unanimity of views on
major issues," he said.

Prime Minister has offered a number of incentives for
investors and urged Saudi Arabian business community to benefit from
liberal trade policies of Pakistan. Talking to Khalid Zenal Ali Reza and
other leading Saudi businessmen, the Prime Minister said Pakistan is one
of the countries where foreign investors could find business-friendly
atmosphere to get maximum profit. Highlighting the role of Saudi Arabian
investors in Pakistan, the Prime Minister asked them to play on 'front
foot' in the pro-business climate and take full advantage of incentives.
The Prime Minister said, keeping in view vast resources of coal, Saudi
Arabian firms should start a mixture of gas and oil fuel to utilize this
abundant natural resource in Pakistan.

Shaukat Aziz also discussed various avenues of
promoting foreign investment in Pakistan and assured that his government
would provide maximum incentives and opportunities to foreign investors
with the assurance of continuation in economic policies. Talking to a
delegation of Jeddah Chamber of Commerce, Prime Minister Shaukat Aziz
said there should be more interaction between representatives of
business community of the two countries. The Prime Minister explained
future economic policies and said that there was plenty of scope for
foreign investment in production, construction and energy sector. He
said under liberal economic policies, foreign investors could take 100
percent profit abroad.

FINANCIAL ASSISTANCE

Saudi Arabia has agreed to provide financial
assistance to Pakistan for developing coastal highway and construction
of small dams besides investing in other areas. It was agreed during the
a meeting of Prime Minister Shaukat Aziz with the Saudi Arabian Finance
Minister Dr. Ibrahim Bin Abdul Aziz in Jeddah. The Saudi Arabian finance
minister agreed in principle to a proposal to set up a Pakistani bank in
the Kingdom to facilitate overseas Pakistani for transfer of their
remittances to their homeland. Dr. Ibrahim also agreed to assist
Pakistan in the packing and preservation of dry fruits in the Northern
Areas.

The Prime Minister informed the Saudi Arabian finance
minister that Pakistan offers excellent opportunities and invited Saudi
Arabian businessmen to invest in the industrial sector. Shaukat
appreciated the performance of Pak-Saudi Investment Company and
expressed the desire for more such Saudi Arabian ventures in Pakistan.
He hoped that taking the advantage of liberal economic policies of the
present government, there would be investment from Saudi Arabia in
Pakistan.

Prime Minister Shaukat Aziz's visit to Saudi Arabia
is proof of the importance Pakistan attaches to the Kingdom. The Prime
Minister chose Riyadh for his first foreign visit denotes the fact that
he holds the Saudi rulers, who have always stood by Pakistan, in high
esteem. Prime Minister Shaukat Aziz said Saudi investment is grounded in
the glorious history of economic ties of both States. Saudi Arabia is
the only country that has been coming to Pakistan's aid in times of
economic crunch, said the premier, and added the new assistance is in
addition to Saudi Arabia help to Pakistan tide to over its economic
problems.

The Saudi kingdom has supplied oil to Pakistan on
deferential payment. When Pakistan was hit by punitive sanctions because
of its testing of nuclear bombs in 1998, it was the Saudi oil supply and
economic aid that helped, to a large extent and kept Pakistan's economy
afloat. The kingdom has been generously providing jobs to Pakistanis
presently, more than a million are employed there. Major portion of
Pakistan's overseas remittances come from Saudi Arabia. However, there
is yet another fact that the present level of Saudi investment in
Pakistan does not correspond to the high status of their bilateral ties.

The same is the case with Pakistani investors, who
have failed to exploit numerous investment opportunities in Saudi
Arabia. The trade ties, too, need improvement. At a time when Saudi
Arabia has introduced new clauses to encourage investment and boost
trade, Pakistani investors and traders must explore various ways and
means to carve out a respectable niche for themselves in the Saudi
market.

Besides, given the success to the existing joint
ventures, including Pak-Saudi Fertilizer, more such ventures should be
set up. In addition, frequent exchange of trade delegations, at official
and private levels, must be ensured. The Pakistani labour force working
in Saudi Arabia constitutes an important factor in not only
strengthening the friendly ties between the two states, but also in
spending remittances to shore up Pakistan's foreign exchange reserves.
The number of Pakistanis working in the Kingdom could increase
substantially only if the recruitment agencies involved in sending
labour from Pakistan to Saudi Arabia could be properly scrutinized and
any irregularities involved in this business should be checked.

As for Saudi investors, it is important that
investors' reservations are removed. One way of doing that is to improve
law and order to inculcate a sense of security in the potential
investor. Saudi investors are looking for new territories and avenues to
invest their money. Pakistan could become their focus, provided all
impediments hampering investment could be removed. With Pakistan being
billed as the future hub of trade in South Asia, particularly Central
Asia, every effort should be geared towards paving the ground for a
smooth flow of foreign investment. This is where Prime Minister Shaukat
Aziz's call for fostering tolerance in Pakistan comes into play. It's
surely in Pakistan' interest that every expression of violence, which
scares away the investor, must be strictly avoided.

In this context, it is a positive sign that Saudi
Arabia has authorized the general investment fund to sell the state's
shares in a number of joint venture companies, including the
Saudi-Pakistani Industrial Development Company to the local private
sector. The Saudi government has a 50 percent stake in seven joint
venture companies established with a number of countries, including
Pakistan, Syria, Egypt, Morocco and Bangladesh, including the
Saudi-Pakistani Industrial and Agricultural Company, which is stated to
be in sound financial health. Prime Minister Shaukat Aziz's should give
a further boost to the efforts by both countries to increase their
economic cooperation.